How are home loan interest rates calculated?

Lenders consider several factors to determine your home loan interest rate. These include: Credit Score: The higher your credit score is, the lower will be your interest rate will be Employment Status: If you have stable employment with a reputed employer, you can get the lowest home loan rate Debt-to-income Ratio: If your debt-to-income ratio is on the higher side, the lender may charge you a higher home loan interest Benchmark Lending Rate: Any change in the Marginal Cost of Funds Based Lending Rate (MCLR) or Repo Linked Lending Rate (RLLR) may directly impact your home loan rate Location: If your property is located in a prime locality, you may get a home loan at a lower interest rate Tata Capital offers home loans at the most competitive interest rates in India. Our home loan rates start from just 7.70%* per annum.

What are the different types of interest rate for housing loan?

There are primarily two types of interest rates in a home loan: Fixed interest rate: The interest rate remains constant throughout the loan tenure. Floating interest rate: The interest rate fluctuates based on market conditions and changes in the RBI's policy rates.

How can I reduce my home loan interest rate?

You can reduce the home loan interest rates using these tips: Improve your credit score Opt for a shorter loan tenure Compare lenders to find the best deal Consider a home loan balance transfer to a lender offering a lower interest rate.

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Home Loan
Rates and Charges

Home Loan Interest Rate

High loan amounts up to Rs. 7.5 crore*
Minimal documentation requirements

Flexible loan tenure up to 30 years

Rates & Charges

Apply Now

Overview Required Documents Rates & Charges

Calculators

Quick Cash

Housing Loan Interest Rates for Salaried & Self-Employed

*Final ROI may vary based on credit checks, property & other parameters

*Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.

Home Loan Interest Rate Charges

Customer Profile	Loan Amount	Delayed EMI Payments	Cheque dishonor charges/rejection of NACH/ECS	Interest Rate	Processing Fees
Salaried	Rs. 5 lakhs to Rs. 7.5 crores *	2% per month (24% p.a.) on the defaulted EMI & Rs. 700/- per instrument per Instance	Rs 700/- per instrument per instance	Starting at 7.75% per annum	Up to 3% of the loan amount + GST
Self Employed	Rs. 5 lakhs to Rs. 7.5 crores *	2% per month (24% p.a.) on the defaulted EMI & Rs. 700/- per instrument per Instance	Rs 700/- per instrument per instance	Starting at 8.35% per annum	Up to 3% of the loan amount + GST

*The maximum loan amount offered may increase on a case-by-case basis, depending on individual eligibility and in accordance with our approved policy.

Home Equity Charges

Customer Profile	Loan Slab	ROI* (%)
Salaried/Self Employed	Any Amount	9.50% onwards

*Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.

Current Home Finance Rate of Interest - Prime Lending Rates (PLR)

New Customer

New customer
Customers onboarded from September 1st, 2024.

Date	Retail Customers (NRPLR)	Corporate Customers (NCPLR)
September 1st 2024	10.80%	10.10%
April 12th 2024	10.60%	9.90%

Effective From	PLR
September 1st 2024	20.20%
March 13th 2024	20.00%
March 6th 2023	19.75%
January 1st 2023	19.50%
October 1st, 2022	19.25%
August 22nd, 2022	18.75%
June 15th, 2022	18.25%
May 16th, 2022	17.75%
January 1st, 2019	17.45%
October 1st, 2018	17.15%
July 1st, 2018	16.85%
May 1st, 2018	16.65%
November 1st, 2015	16.50%
May 1st, 2015	16.65%
December 10th, 2013	16.75%
September 1st, 2013	16.65%
March 1st, 2013	16.40%
October 1st, 2011	16.50%
July 1st, 2011	16.00%
April 1st, 2011	15.50%
December 20th, 2010	14.75%
November 15th, 2010	14.25%
January 1st, 2009	13.75%

*Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.

Mortgage Loans Interest rates

Range of Interest Summary for the period of Q2 FY26

Product	Minimum ROI	Maximum ROI	Mean
Home Equity	7.75%	19.0%	10.84%
Home Loan	7.70%	16.35%	8.96%

Notes

The range of interest rates provided above is with respect to loans disbursed to individuals disbursed during Q2 FY26.
Fresh Loans have been taken into consideration for the calculation of Min, Max & Mean ROI.
Mean Rate = Sum of (Disbursement Amount * Interest rate*Tenor) / Disbursement Amount*Tenor
Rates include various categories like fixed rate, and floating rate and are based on factors such as loan amount.
Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.

Housing Loan Interest Rates and Charges

Processing Fee

The processing fee of a home loan is a one-time charge levied by lenders for processing home loan applications.

Up to 3% of the loan amount + GST

Foreclosure Charges

The foreclosure charges, also known as the home loan pre-closure charges, are levied by lenders when borrowers wish to pre-pay their home loan.

Please refer to Most Important Terms & Conditions – Home Loans for Foreclosure charges

Delayed EMI Payments

Delaying EMI payments can attract heavy penalties and additional home loan charges from your lender.

2% per month (24% p.a.) on the defaulted EMI & Rs. 700/- per instrument per Instance

Collection Agency Charges

If a borrower defaults on his/her home loan, the lender may have to hire the services of a collection agency to pursue payments. These collection agencies charge a fee for their services, which the lender levies on the borrower.

Vary as per the collection agency hired

Other Charges

Home loan registration charges, MOD charges for home loan, PDC charges, loan cancellation charges, cheque bounce charges, account maintenance charges, and NOI charges

Disclaimer - Housing Loan Interest Rates and Charges – The Home Loan interest rates and charges mentioned above are subject to change at the discretion of Tata Capital Housing Finance Limited from time to time. For complete details of applicable charges, please refer to the Master Terms & Conditions sheet.

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Features and benefits of Home Loan

A home loan is a convenient way to turn your dream of owning a house into reality without exhausting your savings. Here are the key features and benefits:

1. High loan amount: Get a good amount of money based on your eligibility, enabling you to purchase your desired property.
2. Flexible tenure: Repay the loan over a tenure of up to 30 years, making EMIs affordable.
3. Competitive interest rates: Benefit from attractive rates starting at 7.75%* p.a. that help reduce your repayment burden.
4. Tax benefits: Enjoy deductions on both principal repayment and interest paid under the Income Tax Act.
5. Balance transfer facility: Transfer your existing loan to Tata Capital to enjoy better loan terms.
6. Multiple purpose use: Use the loan money to buy the land or construct and renovate the property.
7. Minimal documentation: Simple paperwork ensures a smooth and quick approval process.
8. Online application: Apply from anywhere with digital submission of documents.

A home loan offers affordability, flexibility, and convenience, making it one of the most preferred financing options for homeowners.

How to Calculate the Effective Interest Rate for Housing Loan?

The applicable interest rate on a housing loan consists of two components - the base rate and the markup rate. The combination of these two is what you have to pay as interest on your house loan. The effective home loan interest rate is calculated by adding the base rate and the markup rate.

The interest rate applicable to a housing loan comprises two components - the base rate and the markup rate. The interest on your house loan is a combination of the two.

Base Rate: It is the standard lending rate of the lender, applicable to all types of loans. This rate is subject to frequent changes based on multiple inputs and RBI guidelines.
Markup Rate: The markup rate is the additional percentage a lender charges over a base rate (like the Repo Rate, MCLR, or RLLR) to determine your final interest rate.

The formula to calculate the Effective Interest Rate (EIR) is as follows:

EIR = Base Rate + Markup Rate

You can use the following formula to calculate your home loan EMIs based on the applicable home loan rate:

EMI = [P x r x (1+r) ^n]/[(1+r) ^n-1]

Wherein ‘P’ is the principal home loan amount, ‘r’ is the present home loan interest rate, and ‘n’ is the number of installments you need to pay or loan tenure in months.

What are the Key Factors Affecting Home Loan Interest Rates?

Lenders consider several factors while determining home loan interest rates. Below are the factors that affect home loan

interest rates in India:

CIBIL Score

Your CIBIL score represents your creditworthiness and repayment capability, and it significantly impacts the home loan interest rate levied on your home loan. The higher your CIBIL score, ideally over 750, the more competitive your housing loan rates would be.

Job Profile

Your employment status and job profile also affect your property loan interest rate. A steady source of income, secure job, and employment with a reliable employer assure the lender of your repayment capacity and hence, helps you in getting lower home loan rates.

Income

Besides your job profile, lenders also consider your monthly income while evaluating your property loan interest rate. The greater your income is, the better will be your home loan eligibility. So, if you have any additional or part-time income, highlight them while applying for a home loan. You can also apply with a co-applicant, and by pooling your incomes together, you can qualify for competitive home loan rates.

Debt-to-income ratio

Your debt-to-income ratio reflects your ability to pay off additional debts. If your EMIs are significantly draining your monthly income, you will become a high-risk borrower. In that case, the lender may charge you with higher interest on a housing loan.

Benchmark Rate of Lending

The benchmark rate of lending plays a crucial role in determining the current housing loan interest rate. It can either be Marginal Cost of Funds based Lending Rate (MCLR) or Repo Linked Lending Rate (RLLR). RLLR is directly linked to RBI’s repo rate and bears a direct adjustment with every change in RBI’s policy rates.

Types of Home Loan Interest Rates

Lenders primarily offer two kinds of mortgage loan interest rates in India - fixed interest rates and floating interest rates.

Home loan - Fixed interest rates	Home loan - Floating interest rates
The rate of interest on a home loan never changes, irrespective of the market volatility.	In the case of floating home loan interest rates, the rate of interest on a home loan keeps changing as per the current market scenario.
You will have to pay equally divided EMIs for the entire loan tenure with no unexpected changes in the middle.	Floating home loan interest rates depend on the variable base rates offered by lenders, and hence, they are revised automatically with any change in the base rate.

How to Apply for Housing Loan

1. Open Tata Capital’s official website.

2. Visit the ‘Home Loan’ page and click on ‘Apply Now.’

3. Fill out the application form with your personal and property details. Ensure the details are inputted correctly.

4. Upload the required documents after following the recommended guidelines.

5. Proceed with the next steps as prompted.

6. Once the application is completed and submitted, use the ‘Track Application’ option to check your loan application’s status.

7. If there are any queries, respond to them at the earliest for a smooth and quick approval process.

1. Visit the nearest Tata Capital branch.

2. Request the customer representative at the counter to hand over a loan application form.

3. Fill out the required details in the application form.

4. Attach copies of the required documents for ID proof, address proof, etc.

5. Hand over the duly filled and signed application form, along with the required documents, to the branch executive.

6. You will receive an acknowledgment receipt with the loan application number for easy tracking.

Tata Capital’s team will verify your documents before approving the loan. Once approved, your loan amount will be disbursed into your account instantly. You can use the home loan EMI calculator to estimate your monthly payout before applying for the loan to ensure that it suits your budget.

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Home Loan for government employees

With Tata Capital, you can apply for a home loan for government employees in a few easy steps and get housing finance at competitive interest rates.

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With Tata Capital, you can apply for a home loan for self employed in a few easy steps and get housing finance at competitive interest rates.

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Home Loan for women

With Tata Capital, you can apply for a home loan for women in a few easy steps and get housing finance at competitive interest rates.

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Home Loan Interest Rates FAQs

Lenders consider several factors to determine your home loan interest rate. These include:

Credit Score: The higher your credit score is, the lower will be your interest rate will be
Employment Status: If you have stable employment with a reputed employer, you can get the lowest home loan rate
Debt-to-income Ratio: If your debt-to-income ratio is on the higher side, the lender may charge you a higher home loan interest
Benchmark Lending Rate: Any change in the Marginal Cost of Funds Based Lending Rate (MCLR) or Repo Linked Lending Rate (RLLR) may directly impact your home loan rate
Location: If your property is located in a prime locality, you may get a home loan at a lower interest rate

Tata Capital offers home loans at the most competitive interest rates in India. Our home loan rates start from just 7.70%* per annum.

Prepayment refers to repaying your home loan amount before the end of its tenure. When you make a prepayment on your home loan, the lender loses on their interest income. To cover this loss, they levy a prepayment charge. This charge is expressed as a percentage and levied on the total outstanding balance at the time of making the prepayment.

At Tata Capital, we do not levy any prepayment charges when you repay your home loan using your own funds. However, if you make your home loan prepayment using someone else’s funds, you may have to pay a nominal prepayment charge for it.

Yes. You can opt for a home loan balance transfer facility to switch your home loan to another lender offering a lower interest rate. However, this facility is not offered by all home loan lenders in India. With Tata Capital, you can enjoy highly competitive home loan rates, starting from just 7.70%* per annum. You can transfer your outstanding home loan balance from another lender to us at very nominal charges.

A Goods and Services Tax (GST) of 18% is applicable on all home loan rates and charges as per government norms. For example, if you have taken a home loan of Rs. 1 crore at a 1% processing fee, your home loan processing fee would be Rs. 1 lakh, and you will have to pay a GST of Rs. 18,000 on it. So, your total processing fee would become Rs. 1,18,000. GST has made home loans a little more expensive for home buyers.

Yes. You can claim the interest paid on your home loan as a tax deduction under Section 24 of the Income Tax Act of 1961. The maximum tax benefit allowed under this section is Rs. 2 lakh. Additionally, you can also claim stamp duty and registration charges paid for your property as tax deductions under Section 80C. This section allows a maximum tax benefit of Rs. 1.5 lakh in a financial year.

Your credit score is one of the most crucial factors that determine your home loan interest rate. A good credit score reflects that you are a responsible borrower, making you eligible for lower home loan rates. If you have a credit score of 750 or more, you can get a home loan at the best interest rate.

Pre-approved home loans usually come with lower interest rates and charges. It’s because these loans are given to eligible homebuyers for buying Tata Capital-approved properties. To check your eligibility for a pre-approved home loan, you can visit our website or walk into your nearest Tata Capital branch.

The lowest home loan rate today can vary based on the lender, your credit profile, loan amount, and tenure. Generally, it ranges from 6.5% to 8% per annum.

There are primarily two types of interest rates in a home loan:

Fixed interest rate: The interest rate remains constant throughout the loan tenure.
Floating interest rate: The interest rate fluctuates based on market conditions and changes in the RBI's policy rates.

You can reduce the home loan interest rates using these tips:

Improve your credit score
Opt for a shorter loan tenure
Compare lenders to find the best deal
Consider a home loan balance transfer to a lender offering a lower interest rate.

Two methods of calculating home loan interest payments are-

- Simple interest method: It includes the principal amount and the rate of interest

- Compound interest method: This includes the principal amount, the rate of interest, and interest accumulated over previous periods.

A longer loan tenure results in lower EMIs, but it also means a higher interest rate. Conversely, a shorter tenure leads to higher EMIs, but with a lower interest rate.

Home loans are often disbursed in installments. Until the final amount is disbursed, borrowers may have to pay the cost of interest charged on the disbursed amount. This is known as pre-EMI interest.

Tata Capital provides home loans at competitive interest rates with flexible repayment options. You can use the loan to buy, renovate, or extend a home, purchase land, or transfer an existing loan. With simple paperwork, quick approval, and easy eligibility, getting a home loan is smooth and hassle-free.

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Find the right Loan for you

Affordable Housing Loan

At Tata Capital, we believe that every single person, regardless of their financial background, deserves a home to call their own.

With this vision, Tata Capital Housing Finance offers affordable home loans at competitive interest rates.

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Home Extension Loan

As the years go by and your family continues to grow, does your house feel smaller?

Tata Capital’s Home Extension Loan is a perfect solution to help you give your family that additional space they deserve.

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Home Loan for Self-Construction

Instead of buying a ready-to-move-in house, you can choose to purchase a piece of land and construct your house on it brick by brick.

A home loan for self-construction or simply a home construction loan is a special type of home loan given to help borrowers construct their own house on a piece of land or plot.

Know More

Home Loan Top-up

A home loan top-up is a facility offered by lenders under which a borrower can take an additional loan over and above their existing home loan.

The home loan top-up facility is available only for existing home loan borrowers without the need for any additional security or guarantee.

Know More

Quick Cash

Quick Cash loan is a unique Pre-Approved personal finance top-up linked to your existing Tata Capital Housing Finance Limited (TCHFL) loans. This loan is only for existing TCHFL Home Loan and Home Equity customers.

Apart from its unique features, it also offers other advantages such as faster processing, and a paperless journey, notwithstanding that all this could be availed in just a few clicks at your convenience any day 24*7.

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Balance Transfer

A home loan balance transfer, or simply a home loan transfer, takes place when you transfer your outstanding home loan amount to a new lender from your existing lender.

With Tata Capital Home Loan Balance Transfer, you can transfer your outstanding home loan balance to affordable interest rates. Our home loan interest rates start from just 7.75% per annum*.

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What our customers say about us

Service provided by Manoj Patel in Surat vesu Branch was helpful and because of his support we were able to close loan.

Prakash Patil

Home Loan | 23 Aug, 2024

Excellent A1 Services. The Lady at the Customer Desk is very Cooperative and helpful so that my work completed without the time frame. The name of the Lady is Amruta Pathak. God bless her and her family. Thanks and Regards for the entire team of Tata Capital.

Nandlal Lal Arora

Home Loan | 13 Aug, 2024

Very good & prompt service, and we have spoken to Mr. Manish also, and he always helps us to provide our request. Thank you, Ms Apurva Shende & Manish Padwal

Farhang Ahmed Azar

Home Loan | 24 Jul, 2024

I'm happy with the service and the help I got earlier for foreclosure letter. Thank you so much & thanks to Alisha mam for her guidance.

Akshay Anil Pawar

Home Loan | 17 Jul, 2024

Special thanks to Mr. Avinash for his help rendered with full commitment to his job, answering the queries to me clearly, and follow up so that the work is done in given time to get customer satisfaction.

Hannah Grace

Home Loan | 02 Jul, 2024

Mr Avinash who handled my case is well experienced and has courtesy for customers' concerns. However, some of the Tata Capital products are very expensive when compared to other banks' ones!

Mohammed Shakeel Urrahman

Home Loan | 28 Jun, 2024

Start to end of my loan process was simple and guidance of your team members were to the point. My last communication was with Mr. MANOJ PATEL from surat branch he was very polite and helpful.

Anamika Vijaykumar Tiwari

Home Loan | 20 Jun, 2024

We extend our heartfelt gratitude to Mr. Pravin Sagare, Senior Officer of Customer Service, for his exceptional service. His remarkable demeanor and professionalism during telephonic interactions with customers have been truly outstanding. Over the past two years, we have utilized various services, yet none have matched the quality provided by Mr. Sagare. We are deeply impressed by the exemplary service, due to this reaons we has influenced our decision to obtain a second home loan from TATA Capital Housing Finance Limited.

Avinash Vasantbhai Bhesaniya

Home Loan | 07 Jun, 2024

I had applied for a home loan at Tata Capital & got the it approved quickly. The process was smooth and sanctioned with sufficient amount with tenure period of 20 yrs.

Sumeet Verma

Home Loan | 14 Mar, 2022

Read All

Free Credit Score

Home Loan Interest Rate

Housing Loan Interest Rates for Salaried & Self-Employed

Home Loan Interest Rate Charges

Home Equity Charges

Current Home Finance Rate of Interest - Prime Lending Rates (PLR)

Mortgage Loans Interest rates

Housing Loan Interest Rates and Charges

Processing Fee

Foreclosure Charges

Delayed EMI Payments

Collection Agency Charges

Other Charges

Avail TATA Capital loans directly from WhatsApp

Features and benefits of Home Loan

How to Calculate the Effective Interest Rate for Housing Loan?

What are the Key Factors Affecting Home Loan Interest Rates?

CIBIL Score

Job Profile

Income

Debt-to-income ratio

Benchmark Rate of Lending

Types of Home Loan Interest Rates

How to Apply for Housing Loan

More Home Loan products for you

Home Loan for government employees

Home Loan for self-employed

Home Loan for women

Apply for Home Loan in Different Cities

Home Loans for Different Budgets

Home Loan Interest Rates FAQs

How are home loan interest rates calculated?

Are there any prepayment or foreclosure charges on a housing loan?

Can I switch to a lower interest home loan rate during my home loan tenure?

What is the impact of GST on home loan rates and charges?

Are there any tax benefits available on interest rate for housing loan?

How does your credit score impact your home loan interest rate?

How do pre-approved home loans affect rates and charges?

What is the lowest home loan rate today?

What are the different types of interest rate for housing loan?

How can I reduce my home loan interest rate?

What are the different methods for calculating interest rate payment ?

How does the tenure of a home loan affect the interest rate?

What is pre-EMI interest?

Why Choose Tata Capital Housing Loan?

Related Housing Loan Videos

Home Loan Blogs

Token money: Meaning, purpose & important things to know

Pledge vs hypothecation vs mortgage: Key differences

Can you claim home loan interest tax benefits before possession?

How to Apply for GPRA Accommodation via eSampada and eAwas

Find the right Loan for you

Affordable Housing Loan

Home Extension Loan

Home Loan for Self-Construction

Home Loan Top-up

Quick Cash

Balance Transfer

What our customers say about us

Prakash Patil

Nandlal Lal Arora

Farhang Ahmed Azar

Akshay Anil Pawar

Hannah Grace

Mohammed Shakeel Urrahman

Anamika Vijaykumar Tiwari

Avinash Vasantbhai Bhesaniya

Sumeet Verma

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